Which of the Following Investors Would Be Happy to See

question 32

Multiple Choice

Which of the following investors would be happy to see a stock price sharply increase?

• A)An investor who bought a call option.
• B)An investor who bought a put option.
• C)An investor who bought the stock and has sold a call option.
• D)An investor who has sold a call option.

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Definitions:

Retire

To retire means to withdraw from active working life, often due to reaching a certain age or completing enough years of service to qualify for pension benefits.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.

Future Value

The estimated value of an investment or payment at a specified future date, considering factors like interest rates and time.

Deposit

A sum of money placed into a bank account or handed over as a partial payment or security for the purchase of an item.